All eyes are on whether the falling euro-dollar exchange rate will continue to slide lower

All eyes are on whether the falling euro-dollar exchange rate will continue to slide lower

17.12.2025

In yesterday’s U.S. currency trading, the Canadian dollar fell against the yen. The CAD/JPY pair dropped from 112.720 to 112.288. Price action remained confined to the area around the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, prices have stalled near the support level provided by the 75-period MA, while on the daily chart, prices have broken below the 10-period MA—which had previously provided support—and the RSI is currently pulling back after touching the 70 level.

Among European currencies, the euro fell against the U.S. dollar.The euro/dollar pair traded between 1.1803 and 1.1734. It fell from the +3σ to the -2σ levels on the hourly Bollinger Bands. On the 4-hour chart, the RSI has dropped from 72 to 46, and on the daily chart, it has plummeted from the high levels seen since September of this year. Furthermore, as the pair has continued to test lower levels during today’s Asian session, traders should watch for further weakness in the euro during European trading hours.

Today’s economic indicators include the Westpac Leading Economic Index (Australia) at 8:30, Japan’s trade balance at 8:50, the UK’s Consumer Price Index (CPI), Producer Price Index (PPI), and Retail Price Index (RPI) at 16:00, Germany’s IFO Business Climate Index at 18:00, the Eurozone’s Consumer Price Index (CPI) at 19:00, and the UK’sCBI Business Survey, the U.S. MBA Mortgage Applications Index at 9:00 PM, remarks by Fed Governor Waller at 10:15 PM, U.S. weekly crude oil inventories at 12:30 AM, and the U.S. 20-year Treasury auction at 3:00 AM. We will be watching closely to see if the falling EUR/USD pair will extend its decline.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed